Wirecard AG. Investor Presentation 3rd Quarter Results 2012

Transcription

1 Wirecard AG Investor Presentation 3rd Quarter Results 2012

2 Content 1. Key Figures / Highlights 2. Products and Solutions 3. Growth Drivers, Strategy and Outlook 4. Financial Data 2012 Wirecard AG 2

3 1. Key Figures / Highlights

4 Key Figures / Highlights 9 Months Results of Fiscal 2012/2011 9M M 2011 Change in % Group results Transaction volume EUR bn % Revenues EUR mn % EBITDA EUR mn % EBITDA without one-offs EUR mn % Operating cash flow* EUR mn % Earnings after taxes EUR mn % EPS (basic) EUR % Outlook 2012 EBITDA bandwidth between EUR 106 to 113 million *Cash flow from operating activities (adjusted for transaction volumes of a transitory nature) 2012 Wirecard AG 4

5 Key Figures / Highlights Diversified Customer Portfolio Target Industries After the first 9 months in 2012 the transaction volume* amounted to EUR 14.9 bn (+ 33% yoy). Thereof EUR 1.5 bn (~10% average YTD) was generated in Asia. The allocation as at the end of the 3rd quarter 2012 to the individual target industry segments is as follows: Travel & Tourism Airlines Hotels Travel sites Travel agents 25.0% 43.4% Consumer Goods Mail order / TV shopping Brick and Mortar shops Direct Sales / Distribution Digital Goods 31.6% Downloads (Music / Software) Games Communities Sports betting Poker / Casino *) Transaction volume: namely acceptance and issuing means of payment along with associated value added services 2012 Wirecard AG 5

6 Key Figures / Highlights Highlights YTD New customer relationships which include for example Neckarsulm-based Bechtle for its B2B online shops and the Wunderkit application from Berlin-based 6Wunderkinder GmbH. Wirecard has implemented an innovative solution for mytaxi, allowing passengers to pay for their taxi cash-free and cross-selling with existing customers Substantial positive synergies have already been recorded as part of the strategic alliance with Netrada, since the asset deal for Netrada Payment was concluded. Existing customers have ordered additional services, furthermore Wirecard gained new customer relationships Wirecard is working together with Deutsche Telekom AG in implementing its mobile payment strategy. As part of this strategic cooperation, Wirecard is realizing the technical processes for issuing the Telekom MasterCard payment card for Deutsche Telekom Télefonica Germany is also driving the launch of its mobile payment service mpass for retail. mpass uses contact-free NFC (near field communication) technology in stores thanks to Wirecard s support. mpass customers can use this service at around 500,000 global PayPass acceptance points, of which 100,000 are located in Europe Wirecard provides all processing and issuing services and card management for the French telecommunication company SFR, which presented an NFC-based MasterCard in October 2012 Wirecard AG 6

7 Key Figures / Highlights Acquisitions Asia 2011/2012 Wirecard Processing (formerly Procard Services) Dubai January 2011 Local processing unit for merchants, banks and financial institutions 1st level support of customers within Middle East Systems@Work Singapore December 2011 Established technology company One of the leading payment service providers for merchants and banks in the region PrimaVista Jakarta Expected Closing Q Payment solutions for emerging markets incl. POS, mini- and mobile-atms, internet purchases, biometric authentication solutions

8 Key Figures / Highlights Recent M&A activities Wirecard acquires leading Indonesian Payment Service Provider for financial institutions and retailers PT PrimaVista Solusi, headquartered in Jakarta, Indonesia Approx. 250 employees Customers: leading domestic financial institutions and retailers, international banks > 130,000 deployed terminals PrimaVista offers a variety of innovative payment solutions for emerging markets, such as mini- and mobile-atms, solutions for cash payment of utility bills and internet purchases as well as biometric authentication solutions Cash payments in an amount of approximately EUR 39.7 million and earn out-components of up to approx. EUR 4.7 million, dependant on the operational profit of the acquired company in the years 2012 to 2014 The closing of the transaction can be expected in the fourth quarter of 2012, subject to the approval of the relevant authorities in Indonesia Expected Wirecard Group EBITDA contribution 2013: approx. EUR 4.0 million 2012 Wirecard AG 8

9 2. Products and Solutions

10 Products and Solutions Wirecard Group's Merchant Services Online payment services Acquiring services Payment acceptance Risk and fraud management Issuing Banking services Support of all major global payment methods Wirecard Bank is a Member of Visa, MasterCard, licensed acquirer for Discover/Diners, American Express, China UnionPay, JCB Collection of a variety of alternative payment solutions such as: eps, giropay, ideal, Alipay Consumer identification and credit rating, strategy management & decision-making solutions including fraud prevention, business intelligence Prepaid cards as payout solutions, Co-branding cards, virtual or physical Forex management services, corporate and private bank accounts Point-of-Sale Call center Support of all sales channels, including stationary retail stores Operation of own call center facility, 24/7 in 16 languages 2012 Wirecard AG 10

11 Products and Solutions 2012 Wirecard AG 11

12 Products and Solutions Card Issuing Support for multiple card types Consumer Payment Cards Co-branded consumer payment cards Closed loop card solutions B2B card solutions Easy and flexible Loyality by bonus Card solutions in accordance with the EU e-money guideline Standardized real time payments worldwide Own branded card solutions mywirecard 2go Visa (plastic) Mywirecard MasterCard (virtual) mywirecard.com Co-Branded card solutions White labeling platform for partner companies Plastic and virtual cards E-money gift cards For retailers and online merchants based on existing acceptance networks Supplier and Commission Payments (SCP) Virtual prepaid cards used on the internet Payout cards Plastic prepaid cards Payout employees, affiliates etc. worldwide 2012 Wirecard AG 12

13 3. Growth Drivers, Strategy and Outlook

14 Growth Drivers, Strategy and Outlook ecommerce is going through transition Online retailers have to keep pace with incredible speed of the market driven by multichannel and mobile commerce - Europe s ecommerce market 2012 will record ~ 11% growth (based on the outlook for the individual target sectors) - European growth in online retail: by ~12% yoy average from 2011 to 2016 (Forrester 2012) (EU-17 states) - Online retail market in Germany to grow by ~16.5% in 2012 (bvh 2012) - European online travel market to grow by ~10% yoy from 2011 to 2013 (PhoCusWright s 2012) Beyond 2012: Additional growth factors - Eastern-Europe ecommerce Markets expected to grow steadily in the next years (ystats 2011) - Mobile payments volume worldwide expected to reach USD 34bn by 2015 (Strategy Analytics) - More than EUR 160bn volume on prepaid cards expected by 2017 in Europe, (PSE Consulting 2011) Russia and Turkey 2012 Wirecard AG 14

15 Growth Drivers, Strategy and Outlook Entry Point: Dual-Interface Card or NFC-Sticker DISCOVERY Buy card online or in co-brand partner store Pay at Point-of-Sale or Internet and/or SERVICES Payment transactions & ATM withdrawals View balance and transactions Real-time notifications Locate next top up store Top up prepaid card Send money to other cardholders (Person-2-Person) Manage personal details Co-branded Consumer Interface Co-branded Mobile Application 2012 Wirecard AG 15

16 Growth Drivers, Strategy and Outlook Wirecard provides all ingredients for co-branded mobile wallet programs FINANCIAL SERVICES LICENSE WIRECARD E-MONEY/BANK LICENCE Co-Brand / 3rd PARTY SCHEME LICENSE WIRECARD MasterCard/VISA LICENCE Co-Brand / 3rd PARTY TECHNICAL SERVICES Registration KYC Transaction Processing MOBILE WALLET PLATFORM Card & Account Mgmt. ISSUING PROCESSING SERVICES Card Production PIN Management Risk Mgmt. Instant Issuing Topup Processing Fraud Protection Call centre / Administration Interface White-label Mobile Application White-label Consumer Service Area Scheme Networks Card Personalization Card & PIN Mailing SP-TSM* *Service Provider Trusted Service Manager 2012 Wirecard AG 16

17 Growth Drivers, Strategy and Outlook Top-up/reload services Provision of electronic top-up infrastructure for ez-link prepaid cards Support for top-up of prepaid cards and mobile NFC wallet Formed by Land Transport Authority (LTA) in 2002 Issuer of Singapore s largest contactless stored value card portfolio (>10 million cards) Used for payment on Public buses Mass Rapid Transit (MRT) trains Electronic Road Pricing (ERP) Electronic Payment System (EPS) for carparks Selected retail merchants 2012 Wirecard AG 17

18 Growth Drivers, Strategy and Outlook Key objectives to continue strategy of organic growth in conjunction with smart M&A deals to expand the leading position in Europe and the Asian business to gain new customer relationships to broaden the existing customer base to enhance the Company s value chain to step into new markets to extend prepaid card business within Europe to achieve a key position in the upcoming mobile payment market 2012 Wirecard AG 18

19 Growth Drivers, Strategy and Outlook Outlook Fiscal Year 2012: EBITDA bandwidth between EUR 106 to 113 million Guidance based on: Basic growth along with the ecommerce market acceleration by ~11% Additional growth due to new customer relationships and product innovation (cross-selling) 2012 EBITDA contribution by M&A > EUR 5.3mn Growth drivers 2012: Tendency towards mid- and large-scale companies as customers Complexity in payment processing and risk-management drives outsourcing decisions ebusiness as economy driver: dynamic development of pan-european retailing Increasing convergence of bricks-and-mortar and bricks-and-clicks trading 2012 Wirecard AG 19

20 4. Financial Data

21 Financial Data Development Acquiring & Issuing Segment 2012 in TEUR 9 Months 2012 Revenues EBITDA Acquiring & Issuing Segment 102,745 17,827 Acquiring 78,675 9,891 Issuing 24,070 7, Wirecard AG 21

22 Financial Data Key Figures 9 Months 2012/2011 in TEUR 9M M 2011 Revenues 279, ,369 EBITDA 78,128 58,579 EBIT 66,237 52,730 Taxes 12,326 9,304 Profit after Taxes 52,941 42,313 EPS (basic in EUR) Operating cash flow* 65,254 48,163 Shareholders equity 522, ,978 Total equity and liabilities 996, ,079 Employees (as of 09/30/2012 / 09/30/2011) ** thereof full-time employees thereof part-time employees * Cash flow from operating activities (adjusted for transaction volumes of a transitory nature) ** Thereof 61 employees from M&A transactions (Systems@Work / Newcastle Building Society) 2012 Wirecard AG 22

23 Financial Data Revenues, Costs and EBITDA Growth 9 Months 2012/2011 in TEUR without one-off expenditures in , , , , , % 279, ,590 9 Months 2011 excl. special expenditures 9 Months 2012 excl. special expenditures % 201, ,000 80,000 40,000 63, % 78,128 0,000 Revenues Cost of materials incr./decr. of invent. and own work capitalized personnel expenses Other operating expenses Other operating Income EBITDA 2012 Wirecard AG 23

24 Financial Data Consolidated Income Statement 9 Months 2012/2011 in TEUR 9M 2012 of Revenues 9M 2011* of Revenues Revenues 279, ,369 Own work capitalized 6,317 5,271 Cost of materials (160,842) (57.5%) (135,828) (58.5%) Personnel expenses (26,885) (9.6%) (20,759) (8.9%) Other operating expenses (22,114) (7.9%) (23,576) (10.1%) Other operating income 2,114 1,102 EBITDA 78, % 58, % Amortization and depreciation (11,891) (4.3%) (5,849) (2.5%) EBIT 66, % 52, % Financial results (0,970) (1,113) Income tax (12,326) (9,304) Profit after Taxes 52,941 42,313 EPS (basic) EUR *These include non-recurring special expenditures in the amount of EUR 5.2 million for relocating the company s headquarters and the even faster expansion in Asia 2012 Wirecard AG 24

25 Financial Data Financial Comments 9 Months 2012/2011 in TEUR Income tax expenses 2012/2011 9M 2012 in % of earnings before taxes 9M 2011 in % of earnings before taxes Earnings before taxes 65,267 51,617 Taxes on income and profit (12,326) (18.9%) (9,304) (18.0%) thereof impact from deferred taxes (1,225) (96) thereof actual income taxes (11,101) (17.0%) (9,208) (17.8%) Payment balance from taxes on income (adjusted) (8,277) (5,034) 2012 Wirecard AG 25

26 Financial Data Balance Sheet as of September 30, 2012 / December 31, 2011 in TEUR Assets 09/30/ /31/2011 Non-currrent assets 369, ,984 Goodwill 133, ,565 Deferred tax assets 1, Internally gen. intangible assets 25,589 21,748 Other intangible assets 19,951 28,530 Customer relationships 112,359 87,570 Other property, plant & equipm. 9,512 2,921 Fin. Assets/int. bearing securities 67,517 26,714 Current assets 627, ,075 Trade receivables 205, ,146 Cash and cash equivalents 345, ,403 Interest-bearing securities 67,196 9,000 Other 9,016 6,526 Total assets 996, ,059 Equity and liabilities 09/30/ /31/2011 Shareholders equity 522, ,887 Liabilities 474, ,172 Current provisions 1, Tax provisions 5,140 1,319 Trade payables 147, ,428 Interest-bearing bank loans 57,048 86,024 Deferred income taxes 10,276 9,344 Other non-current liabilities 8,430 12,919 Other current liabilities 23,564 15,104 Customer deposits 221, ,042 Total equity and liabilities 996, , Wirecard AG 26

27 Disclaimer This presentation contains explicit and implicit forward-looking statements concerning Wirecard AG, its affiliated companies and their business. These statements are subject to various known and unknown risks, uncertainties and other factors due to which the actual events, financial conditions, performances and achievements of Wirecard AG may differ substantially from those expressed in such explicit or implicit statements. Wirecard AG makes these statements at the time of the publication of the presentation and is under no obligation to update the forward-looking statements in this presentation including on receipt of new information or on occurrence of future events or for other reasons. However, Wirecard AG, may change in its own free discretion any forward-looking statements should relevant factors change. The forward-looking statements from third parties surveys, in particular without being limited to research reports and analysts statements, may prove to be incorrect. Reference to such third parties surveys is provided for information only and does not imply any agreement with or consent to the content of such surveys or the information, opinions or conclusions contained therein. Wirecard AG accepts no liability for the selection, completeness or correctness of third parties studies. This presentation is no offer for the sale and no invitation for offers of purchase or for subscription to of shares of Wirecard AG but is provided for information only. Financial data (IAS/IFRS) refers to the Reports of Wirecard AG published on our website: Numbers and percentages presented throughout this presentation may not add up exactly to the totals or absolute figures provided due to rounding Wirecard AG 27

28 Contact Wirecard AG Einsteinring Aschheim / Munich Germany Investor Relations Iris Stöckl iris.stoeckl@wirecard.com T: + 49 (0)